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The Inflation Puzzle. Martin Feldstein, May 29, 2015, Opinion. “The low rate of inflation in the United States is a puzzle, especially to economists who focus on the relationship between inflation and changes in the monetary base. After all, in the past, increases and decreases in the growth rate of the monetary base (currency in circulation plus commercial banks’ reserves held at the central bank) produced – or at least were accompanied by – rises and falls in the inflation rate. And, because the monetary base is controlled directly by the central bank, and is not created by commercial banks, many believe that it is the…” Link

GrowthPolicy.org pulls together recent research by Harvard faculty about economic growth. Our goal is to disseminate Harvard research to a broad audience in order to inform debate about the role of policy in achieving stability in our financial systems and shared, sustainable economic prosperity. GrowthPolicy.org is a project of: